A U.S. government report stated that, “With bank interest rates around
1.0%, 8% of wage earners believe it worthwhile to keep money in a
savings account. However, at 3.0% interest, 36% of wage earners believe
it worthwhile to keep money in a savings account. The margin of error
for both studies is 4 percentage points.”. A proper conclusion from the
studies is that:
A. increasing the interest rate from 1% to 3% will increase the number of
persons saving money in a savings account.
B. increasing the interest rate may well have no effect on the number of
persons saving money in a savings account.
C. increasing the interest rate will increase the number of persons saving
money in a savings account.
D. the interest rate difference between 1% and 3% may well have no effect
on the number of persons saving money in a savings acc
I am doubt between A and C need help pleaseee :)
To analyze the given information and determine the correct conclusion, we need to consider the stated percentages and the given margin of error for both studies.
1. At a 1% interest rate, 8% of wage earners believe it worthwhile to keep money in a savings account.
2. At a 3% interest rate, 36% of wage earners believe it worthwhile to keep money in a savings account.
3. The margin of error for both studies is 4 percentage points.
The margin of error indicates the potential range within which the true value could lie. So, for the first study, the actual percentage of wage earners who believe it worthwhile to keep money in a savings account could range from 4% (8% - 4%) to 12% (8% + 4%). Similarly, for the second study, the actual percentage could range from 32% (36% - 4%) to 40% (36% + 4%).
Now, considering option A: "increasing the interest rate from 1% to 3% will increase the number of persons saving money in a savings account."
Since the lower end of the range for the first study is 4%, it is possible that the number of people saving money could increase when the interest rate is increased from 1% to 3%. However, this is not a definite conclusion because the upper end of the range for the second study is 40%, which overlaps with the lower end of the range for the first study.
Therefore, we cannot conclusively say that increasing the interest rate from 1% to 3% will increase the number of persons saving money. Hence, option A is not the correct conclusion.
Now, considering option C: "increasing the interest rate will increase the number of persons saving money in a savings account."
Since the lower end of the range for the first study is 4% and the upper end of the range for the second study is 40%, there is no overlap. This suggests that increasing the interest rate may indeed increase the number of persons saving money. Hence, option C is a valid conclusion based on the provided information.
Therefore, the proper conclusion from the studies is option C: increasing the interest rate will increase the number of persons saving money in a savings account.